Question

Assessing the __________ of a tax system means determining the amount of tax revenue needed to fund the government and ensuring that the funds are provided by the system.

Answer 1

Sufficiency

Step-by-step explanation:

Tax is a compulsory levy imposed by the government of a sovereign state on her citizens. Difference types of tax are used by the tax authority to generate sufficient revenue and also to implement economic policy, these are direct and indirect taxes.

The word tax sufficiency relates to the measurement of the divergence if any between the actual tax yield and the expected aggregate tax revenue. This assessment will enable the government of the day to take corrective actions to close any observed gap.